Search and Seizure as per Provisions of The Income Tax Act, 2025 | Along with Assessment of Search Cases | As Amended by The Finance Act, 2026

This 5th Edition of Search and Seizure, authored by Ram Dutt Sharma, is a specialized and authoritative reference on the law governing search, seizure, and the assessment of search cases under the Income Tax Act, 2025, as amended by the Finance Act, 2026. Intended for tax practitioners, advocates, chartered accountants, departmental officers, corporate legal teams, and serious students of direct taxation, the book provides a focused study of one of the most critical and procedurally sensitive areas of tax administration and enforcement.

This work examines the statutory provisions and legal framework applicable to income-tax search operations, seizure of assets and documents, and the consequential assessment proceedings that follow. It is particularly valuable for professionals involved in tax investigations, litigation, compliance strategy, and advisory work concerning search and survey matters. The book broadly covers:

• Legal foundation and scope of search and seizure proceedings under the Income Tax Act
• Conditions and circumstances under which search action may be initiated
• Powers of authorized officers during search operations
• Seizure and retention of books of account, documents, bullion, jewellery, cash, and other assets
• Statements recorded during search and their evidentiary significance
• Rights, duties, and obligations of the person searched
• Procedural safeguards and compliance requirements during search proceedings
• Treatment of unexplained money, assets, investments, and expenditure discovered during search
• Post-search assessment framework and reassessment implications
• Assessment of search cases and related procedural mechanisms
• Issues relating to incriminating material, undisclosed income, and evidentiary standards
• Penalty, prosecution, and recovery implications arising out of search findings
• Important practical and legal aspects under the amended provisions of the Finance Act, 2026

With its subject-specific focus and relevance to both procedural and substantive tax law, this 2026 edition serves as a dependable guide to understanding and applying the law relating to search and seizure under Indian income-tax legislation. Whether used for professional advisory work, litigation preparation, compliance review, or academic reference, the book offers a current and practical resource on a highly significant area of tax enforcement and assessment.

Chapter 1. Historical and Legislative Background
Chapter 2. Organization and Process of Search and Seizure Operations
Chapter 3. Overview of the Legal Provisions
Chapter 4. Preparation for Carrying out a Search and Seizure Action
Chapter 5. Satisfaction Note in Search Cases
Chapter 6. Warrant of Authorisation
Chapter 7. Rights and Duties of Income Tax Department
Chapter 8. Rights and Duties of Persons Searched
Chapter 9. Role of Witnesses in Income Tax Search proceedings
Chapter 10. Centralization of Search Cases - Transfer of cases from one Assessing Officer to another Assessing Officer
Chapter 11. Decentralization of cases from Central Charges
Chapter 12. Powers regarding discovery, production of evidence, etc.
Chapter 13. When can Search be Authorised
Chapter 14. Warrant of authorisation – No jurisdiction over the person
Chapter 15. Extension of Authorisation
Chapter 16. Prohibitory order where it is not possible or practicable to take physical possession to seize, any valuable article or thing
Chapter 17. Prohibitory order where it is not practicable to seize, any books of account, other documents, asset
Chapter 18. Power to requisition service of a Police Officer or Officer of the Central Government or of both; or any person or entity
Chapter 19. Recording of Statement
Chapter 20. Preliminary statement of the occupants of the premises
Chapter 21. Art of Recording of Statement of Assessees/Witnesses
Chapter 22. Evidentiary Value of Statement recorded during Search Operation
Chapter 23. Retraction of Confession made in Statement during the Search proceedings
Chapter 24. Surrender of undisclosed income during the course of search
Chapter 25. Presumptions as to Assets, Books of Account, etc.
Chapter 26. Power to attach provisionally any property belonging to the assessee
Chapter 27. Power to make reference to Valuation Officer
Chapter 28. Applicability of provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023
Chapter 29. Applicability of Provisions of the Bharatiya Nyaya Sanhita, 2023
Chapter 30. Power of Board to make rules
Chapter 31. Powers to requisition books of account, etc.
Chapter 32. Reasons not to be disclosed
Chapter 33. Application of seized or requisitioned assets
Chapter 34. Seized assets may be applied towards existing and future liability
Chapter 35. Release of seized asset on an application made by the person concerned
Chapter 36. Money seized may be applied for discharging the liabilities
Chapter 37. Assets other than money may also be applied to discharge liabilities
Chapter 38. Non-Exclusivity of Recovery Modes
Chapter 39. Return of excess assets seized
Chapter 40. Interest on Excess Retention & Period for Interest Calculation
Chapter 41. Jurisdiction and Transfer of Seized Material - Where the Authorised Officer is not the Assessing Officer of the person searched
Chapter 42. Right to make copies or take extracts
Chapter 43. Retention of Assets and material seized
Chapter 44. Right to object to the approval given for Retention of Seized Documents under section 251(3)
Chapter 45. Conversion of Survey into Search
Chapter 46. Searching the premises - What does the search party generally look out for during search operation
Chapter 47. Assets which can be seized during search operation
Chapter 48. Assets which cannot be seized during search operation
Chapter 49. Panchnama
Chapter 50. Appraisal Report
Chapter 51. Inspection of seized books of accounts and documents by the person searched
Chapter 52. Treatment of Cash found during Search Operation
Chapter 53. Depositing the seized money in the Personal Deposit Account (PD Account)
Chapter 54. Treatment of Jewellery found during Search Operation
Chapter 55. Treatment of notings in diary, loose papers, dumb papers, electronic images, etc. found during Search Operation
Chapter 56. Treatment of Discrepancies in Stock-in-Trade found at the time of Search Operation
Chapter 57. Admissibility of electronic evidence in a court of law
Chapter 58. Consequences of a search being held as Illegal
Chapter 59. Exclusions from Faceless Assessment
Chapter 60. Special procedure for assessment of search cases - [Block period for searches conducted on or after 01.04.2026]
Chapter 61. Assessment of total undisclosed income as a result of search
Chapter 62. Computation of Total Income of the Block Period
Chapter 63. Procedure for Block Assessment
Chapter 64. Tax in case of Block Assessment of Search cases
Chapter 65. Undisclosed Income of any Other Person
Chapter 66. Time-limit for completion of Block Assessment
Chapter 67. Certain interests and penalties not to be levied or imposed
Chapter 68. Levy of Interest and Penalty in certain cases
Chapter 69. Authority competent to make Assessment of Block Period
Chapter 70. Application of other provisions of Act
Chapter 71. Authorisation and Assessment in case of Search or Requisition
Chapter 72. Interpretation
Chapter 73. Assessment of Income pertaining to the Block Period for searches conducted on or after 01.09.2024 to 31.03.2026
Chapter 74. Assessment of income in case of a Searched person
Chapter 75. Procedure of assessment in cases where a search was initiated under section 132/132A after 31.05.2003 but before 31.03.2021
Chapter 76. Applicable Rate of Tax in Search Assessment in the case of a person where a Search initiated [after 31.05.2003 but on or before 31.08.2024]
Chapter 77. Assessment in Search cases
Chapter 78. Penalties in Search Cases
Chapter 79. Offences and Prosecutions in Search Cases
Chapter 80. Important Forms